Reassessment notice to non-existent entities and failure to consider filed return rendered the proceedings unsustainable.

Reassessment proceedings against amalgamating entities were invalid because the notices were issued to companies that had ceased to exist. The only notice addressed to the assessee was also unsustainable, as it proceeded on the mistaken premise that no return had been filed and ignored the return already submitted along with material showing the relevant transaction. The court held that in reassessment the authority must consider available material and form at least a prima facie view with application of mind; mechanical invocation of jurisdiction is impermissible. The notice under section 148A(b) and the order under section 148A(d) were set aside in favour of the assessee.

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Issues: Whether the reassessment notice and consequential order were liable to be set aside for having been issued without considering the petitioner's return of income and other material, and on the premise that the notice was directed against amalgamating entities that had ceased to exist.

Analysis: The notices issued to the amalgamating entities were directed against non-existent companies. The only valid notice addressed to the petitioner proceeded on the assumption that no return had been filed for the assessment year, although the petitioner had already filed its return and had disclosed the relevant transaction. The material on record showed that the Assessing Officer did not consider the return filed on 08.09.2016 or the information already available showing the transaction in question. In reassessment proceedings, the authority is required to form at least a prima facie view on relevant material and cannot invoke the jurisdiction mechanically or without application of mind.

Conclusion: The notice under section 148A(b) of the Income-tax Act, 1961 and the order under section 148A(d) of the Income-tax Act, 1961 were unsustainable and were set aside in favour of the assessee.

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